Monzo Bank Achieves Twofold Revenue
According to an investor update seen by Moni Talks, UK-based Monzo bank experienced a record 250% revenue in 2022 and is on track to attain annual profitability by the end of this calendar year.
The digital bank recorded an annualised revenue of £440m in 2022 (January to December) and expects to break even in 2023 - a feat not many European neobanks have achieved. According to the investor update, the neobank has been "cash flow positive", with ingoings outpacing outgoings.
Monzo bank turns it around
In the digital bank's annual report for 2020-21, Monzo bank reported £114M in pre-tax annual loss - a similar loss rate to 2019-2020.
Monzo's accountants posed grave concern over the future of the neobank, stating that there was "significant doubt" regarding Monzo's ability to continue.
Fast forward to today, and Monzo has nearly doubled its customer base from 3.9M in February 2020 to 7M, generated record revenue in 2022, and may obtain profitability in 2023 - comeback kings indeed.
Starling was the first European neobank to attain annual profitability, in July 2022. Revolut CEO Nik Storonsky 'claims' that they have been profitable for two years, but Moni Talks cannot substantiate these claims. Revolut has missed the deadline to file accounts twice now.
If we compare Monzo to these industry stalwarts, Starling has 3.5M UK customers, while Revolut has 5.75M UK customers. The potential is clear to see.
The neobank claimed its personal account sign-ups averaged around 150k monthly in 2022. These numbers are likely to bode well for the company in the near future.
What is Monzo?
Monzo is a UK-based digital bank enabling you to open a full UK bank account within 15 minutes from the comfort of your phone. You can earn up to 3.55% gross fixed/AER interest on your savings, set spending budgets, and obtain loans and overdrafts, amongst several other stellar features.
Its programs include Premium, Plus, Abroad, and Flex - take your pick.
At the time of writing, the company's revenues are heavily focused on its famous coral-pink cards.
Author: Surajdeep Singh
Surajdeep Singh has been working in the tech sphere as a marketing guru and journalist for over 6 years, with his speciality laying in blockchain and Web3. He has donned several hats in marketing and journalism over the years and worked with many reputable brands. Feel free to reach out to him on LinkedIn!